Chemtrade Logistics Income Fund

Second-quarter revenue was approximately 17% higher than the prior year, while EBITDA was lower by approximately 8%. Excluding the North Vancouver turnaround, EBITDA was lower by approximately 3% year over year. Distributable cash after maintenance CapEx was 38¢ per unit, approximately 25¢ lower year over year, and distributable cash generated in the quarter was $42 million. Corporate costs were $24 million versus $30 million in Q2 2025. Segment-wise, SWC revenue increased 32% and EBITDA increased 22%; water solutions revenue increased 31% and EBITDA increased 13%; EC revenue was 7% lower excluding the turnaround impact, while EBITDA was 26% lower. The company maintained 2026 adjusted EBITDA guidance of $485 million to $525 million. Management said achieving the midpoint would represent a near record level of EBITDA.

Scott William Rook framed the quarter as evidence that Chemtrade’s diversified portfolio and disciplined execution can generate attractive returns across cycles. He said the company remains on track toward Vision 2030, targeting mid-cycle EBITDA of $550 million to $600 million by 2030 through 5% to 10% average annual growth in EBITDA and distributable cash. His tone was confident but measured, acknowledging pressure in chlor-alkali while stressing that organic growth and acquisitions should more than offset that weakness over time.

Rohit Bhardwaj emphasized resilience in the quarter, noting that merchant and Regen acid in ASP and Polytec in SWC helped offset pricing pressure in EC and higher input costs in water solutions. He highlighted strong distributable cash of $42 million, $11 million invested in organic growth projects in the quarter, leverage of 2.55x, and liquidity of over $400 million. He also pointed out that the company removed all convertible debt from the balance sheet and that the payout ratio of 45% over the last 12 months supports distribution sustainability and capital allocation flexibility.

There was no live analyst Q&A in the transcript, but management pre-emptively addressed several likely investor concerns. They discussed ongoing pressure in chlor-alkali pricing, updated the Northeast Asia caustic soda assumption to about US$370 per ton from US$415 per ton previously, and said North Vancouver’s rezoning process now faces a judicial review petition that Chemtrade will oppose. They also noted tariffs had not created a material direct impact so far and that CUSMA compliance helps support exports to the United States.